Ooh Media’s share price slumps as it revises profit expectations to $125-135m
Ooh Media has downgraded its profit expectations for the 2019 calendar year to between $125m and $135m ahead of next week’s half-year financial report, a significant drop from its original guidance of between $152m and $162m. In response, its share price slid drastically on Friday, dropping from $4.04 to as low as $2.32 at 10:15am (AEST), a 40% plummet.
By 2:45pm, that figure climbed back up to $3.04, but the outdoor media company said quarter three took its toll on a business that relies on second-half results.
Quarter three was down 11-12%, and while quarter four is expected to improve, that improvement will be less than anticipated, and what CEO Brendon Cook described as a “disappointing turn of events” to investors in a conference call on Friday.
“While Ooh has less visibility over quarter four’s results at this stage, Cook said that it is currently sitting at +6%, with a forecast of 13% growth at best and a 2% decline at worst.”
A 15% spread in forecasted sales will hardly give confidence to investors!
Now the Advertising companies are getting free Advertising..they are Smart..well really they are shooting themselves in the Foot…not everybody is a left wing Activist…some people will agree with him.
If this was only the prelude, the full announcement on the August 26th is shaping up to be unmissable. Ooh dear.